one is by 2014 the statement of budgetary resources and then to have overall auditability by 2017. how many people believe they can do this? that is fair. nobody raised their hands, for the record. you all to not believe because this is not a main purpose of the war fighter during the time where troops are in the field. you know they have huge issues associated with these items. let me tell me -- let me tell you a couple things he may not know. one of the challenges in a decrease in but the environment is to know how much you have to spend.

a long time before dhs could get all the debility but yet they are there. it is not an impossible task. it requires some planning and requires some dedication. it does seem like dod has a plan.

moving on -- intergovernmental transactions -- a colleague of mine sitting in the front row, ann davis, started groups which were concentrated on low hanging fruit. what things could we identify that we might be able to make progress on her away? the groups separated intergovernmental transactions into four groups you see -- fiduciary benefits, transfers, buy and sell. do you want to guess which one is the biggest and the hardest? which do we do -- to the most transactions with text who was our biggest trading partner? oh, my gosh. category is the biggest. the groups that were formed have been able to reduce the

outstanding balances of the year ended every single category. is stillknow bob dacey in the room -- without him here, i can say from the treasury's standpoint, we believe we have reduced the balances at year end to the material levels. bob also points out that we may have actually done that but we don't have a repeatable process. we did it through extraordinary measures. all those who were auditors in the room, that that effect to get my balances down below an artificial partial ones, it does not mean i can do it again. i have to be able to do that repeatedly. we have lots of efforts. i will talk more about those of a minute. our realization and your realization needs to be solving the intergovernmental issue. it is not an agency problem. it is not the treasury problem.

it is a community problem. that committed to problem will involve all of you. more to come -- the third week this is the compilation itself. we do not have been the federal government a consolidated set of books or agencies post transactions so we can prepare statements from the consolidated transaction. we see individual transactions, receipts and deposits, as they occur. treasury makes 85% of the disbursements and by the end of the year, we will have a non- treasury disbursements afforded to so we will no 100% of the payments actually made. similarly, 98% of the receipts coming in, come in electronically. we get 98% of their receipts electronically. we do know the individual transactions. there's a gap.

although we know the transactions, we report the man after the agencies and they claim those transactions, classified those transactions and account for those transactions within the federal accounting structure and then monthly or quarterly, report back to treasury bond 224's or other filings to tell us how to classify those filings. we have the individual transactions and we know the results of the agency's classifying those transactions but we don't know the stuff in the middle. when you think about consolidated financial statements, you're talking about a huge compiler's an effort of sometimes individual transactions and sometimes reporting that transaction to different levels. the compilers and system should only be concerned with three things -- who is in the entity, the elimination between organizations you are

reporting, and others you would add at an upper level. we're not there. we have to figure out who should be in our reporting entity. how do we do adequate elimination? what transactions are missing? how do we reconcile budgetary transactions? what is going on? we are reversing the trend. for 15 years, we have a disclaimer of opinion. we have managed to get dod to be bought itable, treasury is issuing government transactions. we have government-wide reporting system. we have the trial balance system coming along. we are creating the general fund and we have a research project to find a solution to

the compilation efforts. albert einstein defined insanity as doing the same thing over and over and expecting a different result. for 15 years, we have done the same thing over and over and expect to get a different opinion. do you have clients to do that? can you think of an agency in the federal government for 15 years has gotten a disclaimer of opinion? why is this so hard to consolidate? the answer is, it isn't. we are embracing winston churchill who said destiny is not a matter of chance, is a matter of choice. it is not a thing to be waited for but i think to be achieved. so - intergovernmental transaction -- new procedures are being issued. tfm is being issued. we are issuing new guidance have

to handle intergovernmental transactions and identified some sources of transactions that we believe to be authoritative. there are certain transactions that the issuing agency clearly is in charge. there may be reasons for your client, the accountants, to adjust those transactions, but they should start with the portrait of transaction. we have implemented quarterly scorecards' which will be reported back to agencies. we start the third quarter reporting period. what is your party? this audience is largely the auditing community. have you looked at the auditing procedures of the agency you are auditing for intergovernmental transaction stacks are the routine procedures york agencies are using to verify and validate intergovernmental transactions with their trading partners? has anybody looked? how many send out confirmations

to other agencies? please review your management representations from your agencies. in sure that they are telling you what they are doing in terms of intergovernmental transactions. verify the postings are occurring. this year, asked that they have looked at the new tfm guidance. start checking as balances. -- start checking those balances. gfrs and g-tabs - we will talk about the study soon but we're moving toward a package that started many years ago and continued to refine it. we get our audience -- are all the assurance for that package. this assurance to offer to us and gao and then we can build

and consolidate. there is nothing to audit at the consolidated level except the consolidation process. that assurance that you provide over that package is critical to us. what is g-taz? it is built on trial balances. it is incredibly helpful to you and to us to identify intergovernmental transactions and other transactions which is not reconciled. it should be. a bit is not a substitute. there are 140 entities for the significant entities compiled for the financial report currently. there is somewhere there10 and 14,000 tas so we will never get to the point where we can reconcile and keep track all the tas and make sure everything happens but we can use that as a tool if they are doing trial balances.

we can use that as a tool towards our assurance. just some additional information -- some of these things were created to address additional reporting requirements that have come along. agencies have expanded reporting requirements. we are all trying to make the agents reporting that we can generate more useful than agency managers, financial statements are wonderful but they don't help agency managers midday today budgetary or practical decisions. they are more of a picture view of what has happened last year or what the long-term future looks like. we are trying to use that same process and information to give managers information more timely that they can use to make decisions. the hill has asked for additional reporting seven times during the year currently. we have to far away to provide them the kind of information we

would have had. lastly, the issues you have been hearing about transparency -- it is incredibly important would be more transparent about the financial data at our disposal now. the general fund -- what the problems with their model is we do not have a general fund. how many people have seen transactions with the general farm? we have all seen them. unfortunately, the consolidation model does not have general fund. transactions in the agencies which are due from the general fund, there is no corresponding. it is authority, debt, and catch. it has worked this war because debt and cash are managed by the u.s. treasury department. there is a process through which we can get budgetary authority. you ask for a warrant and ticket

and generate an apportionment and get omb to sign up and you get budgetary authority. on the other side, there are no accounting answers. at the end of the day, we try to validate the government itself has not exceeded its budgetary authority. this year we have created the general fund account. it looks like a set of agency accounts. it is manage just like her agency manages their accounts. october 1, when one of your agencies to a transaction with the general fund, someone will be looking at that transection ideally basis. they will respond back and look what about the transaction. we will be able to add up those transactions and validate the total authority. that starts october 1.

do any of the statements you see prepared come from the general fund tax what will they do with that? one of the problems we continue to have with the compilation is reconciliation, budgetary and full accounting. they never really reconciled. when dich gray got to be the fiscal secretary, aga said we have a research arm. if there is a project which is beneficial to the entire financial community, we would love to help. we have entered into a research project with them and generate the following report which is outside a new compact pickup. it is basically addresses this model which gives us the way of using the work done by the agencies already to reconcile

budgetary and proprietary accounting. it may be more work for the already doingre this. you are already generating statements so you are keeping track and your auditors are looking at a 224's to make sure everything balances. we don't think there is a big lift for the agency here but it makes a huge lift for the consolidation. when you get a chance, pick up the report on your way out. that ends my discussion of what we get a disclaimer but i want to point out that we are hot on the trail of eliminating the major reasons for the disclaimer. it will require all your help. the agencies have been called for years. now starts the audit cycle. this is the trading year. is great this year. all you have to do is ask questions this year and make sure they're doing something for

next year. please don't miss the opportunity to ask the questions this year. i want to spend less than five minutes on the fiscal service. many of you may or may not know that treasury has announced his bid is combining bcd and sms into a fiscal service. we are doing this because anybody who sat through the zero and the breeding herd all the new projects and activities coming out of treasurys -- omd briefing and all the new projects and activities coming out of treasury. there are things like the invoice payment product where we can do electronic invoice collection, centralizing receivable activities, the new a127 project provided this

opportunity to use export -- to use new existing technologies to share data and a much easier and cheaper and more efficient fashion. we need to get more efficient ourselves. as we ask you to, as my boss would say, don't ask anybody to do anything you are not willing to do yourself. about a year ago, we sat down and ask where we could get efficiency gains and we said we could combine these two things. we would be more efficient operation and the better part to operation and we would be able to accomplish more. october warren -- october 1, this combines. this is significant appropriation savings from that. three goals -- one is consolidated accounting operations between the two,

consolidating it operations and move operating activities to the field. we have several field locations. the financial savings are rather significant. we are experiencing substantial budget reductions that that was not the reason we took it on. we took it on because we needed those two groups to work more efficiently as a single organization. we needed to gain the efficiencies of having them be in a single organization and we need to free up enough resources to start to build products and services that could service you better and we're not going to get those resources through a omb. we needed to create them ourselves. so we are. we're taking a look at our own operation, streamlining and consolidating and we will take

some of the savings there and dump it back into providing products and services which will help you hopefully and the long run. -- in the long run. this is a pictorial view of the financial conditions of the u.s. government as opposed to a budgetary view, as opposed to any other view. it is debut based in your skill set. it gets a disclaimer now. with your help, we expect by the time dot is ready for before, we

can have all the ills we see cleaned up and we expect the report of u.s. government to get improved. this is our contact information. if you have heard anything today you want to know more about or if you'd like to call scott, send him in the emailed. we're both appear so you can ask questions right now. nobody has any questions? we have a couple for you. how many people have heard about the intergovernmental project before today? how many non-managers -- how many employees for an audit firm have had a conversation with your management team about what you should be looking for this year? that's not a whole lot of

people. how many people have seen transactions with the general fund on financial statements that that's more. that is a little scary that the same people are not raising your hand for the other question. how many people are looking for consolidation activity where the agency has started the consolidation activity? there will be more of the next year. this is your opportunity as an auditing community to start thinking about how you're going to approach what you will have to do this next year. you will be faced with new challenges and activities. there is a gentleman in the back of the room with his hand up. i don't recognize him but go ahead. >> what criteria would you use to identify authoritative sources an intergovernmental [inaudible] >> we were looking for

individual entities or organizations where they may have legal precedent to set the transaction. the bureau of public debt has their schedule of debts audited gao added is determined and set forth as the offical document of debt. we're an agency has a corresponding transaction, maybe they are part of that. that amount that is represented on that schedule is the authority of the transaction on the amount of debt. an agency may have other transactions that affect of that but the calculation they used to put the number and their financial statement should die but the authoritative report. some people have said the authoritative amount is the number that should end with. that is not so. that is the number they should start the calculation with. if they don't start that calculation with that number, somebody should be looking. by the same token, there is

guidance associate with benefits and payroll. i used to accrue the last payrolls to be as accurate as possible. i used all the revenue line had or try to figure out where i was financially. that does not mean i should ignore the device. we should start opm number n modify it. it is not. an not. -- it is not an ending point. a lot more stuff will be coming out of treasury the next year. this conference is a great place to hear it. seriously, get engaged. go back and have a conversation with your audit team and have a conversation with ig that you are working for about these things. take the slides of the website and have a conversation. don't find yourself next april when you were sitting down with

them not having had that conversation. he may have one of us at your door saying you don't talk all about something. thank you all very much. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] >> we will talk to the heritage foundation about work requirements for welfare. we will talk about the business experience of u.s. a -- u.s. presence. and we will talk to the managing editor of the huffington post. "washington journal"begins at 7:00 p.m. eastern on c-span. >> today, the congressional budget office releases its budget and economic outlook report. the cbo director will tech -- make remarks and take questions from reporters live starting at 11:00 a.m. eastern here on c- span. >> from time to time, i watch

the proceedings in the house and the senate floor. a look at people of interest that i have cspan on my ipod so i can check their schedules. sometimes if the timing is right, i can get the live feed from the floor of the house or the senate and once that for five or 10 minutes. >> bernie davis watches c-span on comcast. cspan was greeted by america's cable companies in 1975 and was brought to as a public service by your television provider. >> president obama is on a two- day campaign trip with stops in ohio and nevada. mr. obama held a rally at the community college in reno.

his remarks for an education financing. he criticized republican presidential candidate mitt romney for the amount parents have to borrow for their children's education. >> hello, reno. [applause] hello. it is good to be back in nevada. [applause] well, first of all, could everybody give her a great round of applause? alejandra. she was outstanding. i also want to a knowledge a dear friend, a great friend of working people, not just here in nevada but all across the country -- your senator, harry reid, is in the house. [applause] there he is.

it is good to see all of you. let me point out, every time i come here, the weather is really good. you guys have a pretty good deal here. it is beautiful. we flew over tahoe, which, well, i would like to pretend that there is a big campaign of and there. -- big campaign even there. -- big campaign event there. but i cannot really pretend that that is the case. but it is wonderful to be in the state. it is great to be at truckee meadows community college. i came here today to talk about what students are doing here every single day -- your education is the single most

important investment you can make in your future. that is true for every single student here. it is true, whether you are talking about a community college or a four-year college or university. i am proud of all of you who are doing what it takes to make that investment. not just the money, but also the long hours in the library, because i hope you are spending long hours in the library, in the lab, in the classroom -- it has never been more important. if the degrees students learn from this college -- that is the surest path he will have to a good job and to higher earnings. it is the best tool that you

have got to achieve that basic american promise, that simple idea that, if you work hard in this country, you will be rewarded. the basic bargain that says, if you work hard, if you are willing to put in the effort, you can do well enough to raise a family, own your home, put away a little for retirement. you will not have to worry about being bankrupt if you get sick. maybe you can take a vacation once in awhile. most importantly, you know you will be able to pass on to your kids more opportunity and the possibility that they can do things you could not even dream of. that is what america is all about. [applause] making sure that those doors of opportunity are open to everybody -- that is the reason i ran for president. that is what my presidency has been about.

that is why i am running for a second term as president of the united states. [applause] >> four more years. >> here is the thing. your education is not just important to you. it is important to america's success. when we invest in your future, we are investing in america's future. the fact is, countries that out educate us today will out compete us tomorrow. we cannot afford to lose that race to make sure we have the most highly educated, most skilled work force in the world. when companies and businesses are looking to locate, that is what they are looking for. i do not want them looking any

farther than reno, nevada, the state of nevada, the united states of america -- we have the best workers in the world, and i want to keep it that way. [applause] your education is getting more important. i am not telling you anything you do not know. more than half of new jobs over the next decade will require some form of higher education. i do not think this is any news to you -- higher education is getting harder and harder to afford. it is tough for a lot of folks. over the past 20 years, tuition and fees at american colleges and universities have more than doubled. the average student who borrows to pay for college now graduates with about $26,000 in student loan debt.

living with that kind of debt means you have to make tough choices, is especially when you are for starting out. it may mean putting off starting a family or buying a home. it may mean you do not have enough savings to try to start that new business idea that you have got. when a big chunk of each paycheck goes just towards servicing your loan debt, that is not just talk for middle- class families trying to make it, it is also not good for the economy. it means you are not spending that money with local businesses. i want you to understand -- i speak from experience here. michele and i know about this firsthand. we did not come from wealthy families. my mom was a single mom. michele's dad was a blue-collar worker. her mom was a secretary. her parents never went to college.

both of us graduated from college and law school with a mountain of debt. when we got married, we pulled our liability, not our assets. [laughter] we got poorer, not richer. we paid more on our student loans and our mortgage each month and were finally able to buy a condo. now we are supposed to be saving for college education, but we are still paying off for our college education. we landed good jobs, steady incomes, but even with that we only finished paying off our student loans about eight years ago. think about that. i became president, three and a half years ago --i was a u.s.

senator about seven years ago. i had been working, michelle had been working, for over a decade before we got all our loans paid off. here is the thing -- i am only standing here before you today because the chance that that education gave me. i can speak with some experience and say, making higher education more affordable for young people is something i have a personal stake in. it is not something i believe in abstractly. it is something michelle has a personal stake in. we believe in it because we have been in your shoes. we know what it is like. [applause] we understand that, unless you provide those runs on the ladder of opportunity, young

people, many of whom are more talented and michele and i, may not get a shot. that is why i have made this one of the top priorities. it is part of what is at stake in this election. when all of you walk into that voting booth in november, you are going to have a choice -- part of it is the choice of how we treat education in this country. i say this because putting a college's education in reach for working families does not seem to be a priority that my opponent shares. look, a few months ago, governor romney told a crowd of young people just like you that, if you want to be successful, you want to go to college or start a business, you can adjust, and i am quoting "borrow money, if you have to, from your parents."

[boos] did your parents have a whole bunch of money to lend you? my parents did not have a lot of money to lend me. i bet a bunch of your parents do not have a lot of money to lend you. it is not because they do not want to -- they do not have it. when a high-school student asked governor romney what he would do to make college more affordable for families, governor romney did not say anything about loan programs that help millions of students earn a college education. he did not say anything about work study programs or college tuition. he did not say a single word about community colleges or how important higher education is to the future. here is what he said -- "the best thing i can do for you is to tell you to shop around." to shop around -- this is his plan.

that is his answer to a person hoping to go to college -- shop around and borrow money from your parents if you have to. that is not an answer. not only is it not a good answer, it is not even an answer. there is nothing in parent wants to do more than to give their kids opportunity that we never had. [applause] there are very few things more painful than a parent not being able to do it. we are still fighting back from the worst economic crisis in our lifetimes. a lot of parents out there are working really hard, still struggling to make ends meet. i do not accept the notion that we should deny their children the opportunity of higher education and a brighter future just because their families

were hit by a recession. think about all of the discovery, all the businesses, all the breakthroughs that we would not have had if we told every american that wanted to go to college, tough luck, too bad, you are on your own, shop around. this country has always made a commitment to put a good education in the reach of all who want to work for it. that is part of what made us an economic superpower. [applause] that is what kept us at the forefront of science, technology, medicine -- this is not just a new commitment we have made. my grandfather had the chance to go to college because, after fighting on behalf of america in world war ii, he came back to a country that decided, you

know what, we will make sure that every veteran should be able to afford college. [applause] my mother was able to raise me and my sister by herself and go to college because she was able to get grants and worker wicker school. -- work her way through school. michelle worked her way through school. [applause] michele and i would not be here without the help of grants and student loans. we're only here because chance of the chance education gave us. i want everyone to have that chance. parents have to parent, young people have to stay disciplined and focused, but if you are willing to work hard, a college education in the 21st century should be available to everybody, not just the wealthy few. [applause]

that's what i believe. whether it is a four-year education, a two-year program, higher education is not a luxury. it is a necessity. every american family should be able to afford it. that is what is at stake in this election. that is a reason i'm running for president. i want you to understand -- i am not just talking the talk, making promises. since i took office, we have helped over 3 million more students afford a college education with grants that do not make it difficult. [applause] unfortunately, the economic plan of governor romney cut education by about 20%.

the grants that we have used, that many of you may be taking advantage of -- those grants could be cut so deeply that 1 million students who have been helped would no longer get scholarships. it would cut financial aid to nearly 10 million students a year. here is the worst part -- they are not making these cuts to reduce the deficit. they are not making these cuts to create more jobs. they are doing it to pay for a new, $5 trillion a tax cut weighted towards the wealthiest americans. [boos] does that sound like a better plan for a future for you? it is a plan that says we cannot afford to help the next generation, but we can help massive new tax cuts for millionaires and billionaires. we cannot offer student loans

because we have to protect them. -- corporate tax loopholes. it says, we cannot help young people trying to make it because we have to protect folks who already have made it. that is not a vision that we have to accept. accept. governor romney likes to talk about the time as an investor. his economic plan makes clear he does not think your future is worth investing in. i do. that is the choice this november. [applause] we are going to make sure that america once again leads the world in educating our kids and training our workers. there are business owners across the country who say they cannot fill the skilled positions they have opened. you have millions of people out there looking for work. i want to give two million more americans the chance to go to

community colleges just like this one, to learn the skills that local businesses are hiring for right now. community colleges like truckee meadows educates our workforce. [applause] this is where young people and some not young people can come and get trained as nurses and firefighters and computer programmers. folks who manufacture clean energy. these are the vital pathways of the middle class. we should not weaken them. we should strengthen them. earlier this summer, harry reid and i fought to make sure the interest rate on federal student loans did not go up. [applause]

we won that fight. the republican plan in congress would have allowed those rates to double, costing more than 7 million students an extra $1,000 a year. with the help of harry reid, we set up a college tax credit so more middle-class families can save more than $10,000 on tuition. governor romney wants to repeal it. in 2008, promised we would reform the student loans system that was giving billions of taxpayer dollars to lobbyists instead of giving it to students. they were taking a cut out of the student loan program, even though they have the federal government guaranteeing the loans. $60 billion worth. we said let's cut them out.

let's give the money directly to students. [applause] we won that fight. that is what we used to double the grants for students who were in need. my opponent wants to return the system back to the way it was. he wants to go backwards, the policies where banks were taking out billions of dollars from the student loans program. that is the choice in this election. i want to move forward. he wants to go backwards. we are not going to let him. that is what is at stake in this election. [applause]

you know, four years ago, i promised we would end the war in iraq. we promised we would go after al qaeda and bin laden. we promised we would start turning over security responsibilities to afghan so we could bring our troops home. we are keeping these promises because of the tremendous sacrifice of our men and women in uniform. [applause] all of our troops are out of iraq. we have to make sure we keep safe those folks who have fought for us. we made sure to keep the post- 9/11 -- strong.

everybody who has served this country should have a chance at the gi bill. as long as i am commander in chief, this country will care for our veterans and serve them as well as they have served us. [applause] nobody who fights for this country should have to fight for a job, or fight for a college education, or fight for a roof over their head when they come home. that is part of what is at stake in this election. over the course of the next 2.5 months, the other side will not talk much about education. they do not really have a plan. they will not be talking about much, but they will spend more money than we have ever seen on ads that just try to repeat the same thing over and over again. the economy is not doing as

well as it should and it is all obama's fault. it is like going to a concert and they keep playing the same song over and over again. [laughter] the reason they have to try to keep repeating that over and over again is because they know their economic plan is not popular. they know the american people will not buy another $5 trillion tax cut, most of which goes to wealthy americans and that will be paid for by you. they know gutting education to pay for tax cuts for millionaires and billionaires will not sell. if they cannot advertise their plan, they will fall back on the fact that you get discouraged, that you get cynical, that you decide your vote does not matter. they are betting that each $10

million check from some donor drowns out millions of voices. they do not see that as a problem. that is their strategy. i am counting on something different. i am counting on you. [cheers and applause] part of what you taught me in 2008 is that when the american people join together, they cannot be stopped. when we remember our parents, great grandparents, and all the sacrifices they made, we are reminded that this country has always risen and fallen together. when we remember that what makes us special is the idea that everybody gets a fair shot, and everybody does their fair share, when that is our focus,

you cannot be stopped. so here is what i will need from everybody. you have no excuse not to register to vote. we have staff and volunteers for you right here. they will grab you at the door. you will not be able to escape. this young lady right here, she is ready to register voters. if somehow we miss you or if you decide you want to help your friends and your neighbors and fellow students to get registered, you can do it online at gottaregister.com. this is an educated place butgotta is spelled "g-o-t-t-a." [laughter] you have to not just register. you have to grab some friends. you have to grab some neighbors.

you have to take them to the polls. you have to vote. let's prove the cynics wrong one more time. let's show them your vote counts. let's prove your voice is more powerful than lobbyists and special interests. let's keep the promise of this country alive that no matter what you look like or where you come from, you can make it if you try. we have come too far. we have more troops to bring home, more schools to rebuild, more good jobs to create, more homegrown energy to generate, more doors of opportunity to open for everybody who is willing to work hard, and if you will stand with me like you did in 2008, if you are willing

to do some work, and knock on doors and make phone calls, we will win nevada. we will win this election. we will finish what we have started and remind the world why the united states of america is the greatest nation on earth. god bless you. god bless america. [cheers and applause] >> four more years.

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>> this week again sunday at 4:00 p.m.,

this is part of our book-tv weekend on c-span 2. >> coming up today and c-span 2, the hispanic leaders talk about the issues they want to talk about at the republican and democratic national convention law the 10:00 eastern. law the 10:00 eastern.